The political landscape in India now exhibits a sense of continuity, which augurs well for policy stability and the nation’s development trajectory. The reaffirmation of the ruling party’s mandate signals a resolute path forward, ensuring that key economic policies and initiatives stay on course.
The BJP’s manifesto, branded under the vision ‘Viksit Bharat,’ outlines an ambitious plan to transform India into a developed nation by 2047, coinciding with the country’s centenary of independence.
Third term:
In its third term, the BJP aims to continue its reform agenda and complete unfinished initiatives. Prime Minister Modi has hinted at making significant decisions to accelerate India’s growth. He highlighted the current period as unprecedented, marked by increasing growth rates, decreasing fiscal deficits, rising exports, a reducing current account deficit, controlled inflation, and growing opportunities and incomes. These factors collectively contribute to poverty reduction.
Future reforms:
Future reforms are expected to focus on further digitalization and strengthening India’s role in global value chains. The BJP’s policy push towards manufacturing and exports is anticipated to continue, with an emphasis on supply-side reforms. These reforms include a transition to clean energy, increased spending on both digital and physical infrastructure, and targeted policy initiatives aimed at youth, the poor, women, and farmers.
- Infrastructure
A notable aspect of the NDA’s governance has been its focus on infrastructure development, resulting in the doubling of highway lengths and an increase in the number of airports from 74 to 146.
BJP Manifesto: ‘We will focus on the modern road network, enhance rail and metro connectivity with new age trains and expanded networks, develop comprehensive EV charging stations, construct new airports and advance our telecom infrastructure with affordable 5G and innovative 6G technology, promoting ease of living for middle class families’
We will expand the railway network to increase capacity for passenger as well as cargo transportation. We have constructed 31,000 km railway tracks in the last ten years. We are now adding 5000+ km of new tracks every year and will continue to add new tracks at this pace for the next five years’
Key players: Ambuja, Ultratech, L&T, Jupiter Wagons, RVNL, NCC, BHEL
– This theme will continue to gain prominence. Prime Minister Modi has recently announced that the speed of implementing infrastructure projects will be accelerated manifold in the next five years to make India the third-largest economy in the world.
– Railways and highways are expected to remain top priorities on the government agenda, with related sectors like minerals and metals also projected to grow.
– In the third term, the government may export locally designed and manufactured Vande Bharat trains.
– Over the next five years, the railway network is set to expand rapidly with the addition of 5,000 kilometers of new track each year.
– The government has set ambitious targets for the transport sector, including developing a 200,000-kilometer national highway network by 2025 and expanding the number of airports to 220.
– Further, Vision 2047 plans to complete the construction of national highways by 2037, as robust road infrastructure can have a multiplier effect in the following decade.
- Defence Sector
BJP Manifesto: ‘We will vastly expand domestic defence manufacturing and exports of Made in Bharat defence equipment. This effort will be facilitated by accelerating indigenisation in major air and land equipment’
Key players: Hindustan Aeronautics, Bharat Electronics, BEML, Mazagon Dock Shipbuilders, Bharat Dynamics and Garden Reach Shipbuilders and Engineers
– India’s defense sector is witnessing a significant export boom. In FY 24, the country recorded a stellar performance, with defense exports reaching a record high of Rs. 211 billion, marking a substantial increase over the past few years.
– With rising demand for defense equipment, technologies, and services, there are promising prospects for companies involved in defense production and technology development.
- Energy:
Key players: GAIL, IGL, Mahanagar Gas, Gujarat Gas, NTPC. APL Apollo Tubes, Finolex and pipe manufacturers may benefit from government’s vision to convert households to PNG.
By 2032, the government aims to add only 80 GW of coal-based power capacity compared to 500 GW of renewable energy capacity.
The focus is on reducing petroleum imports and achieving energy independence by 2047.
The government should prioritize the development of energy storage infrastructures, such as battery energy storage and pumped hydro projects, to facilitate a smoother integration of renewable energies with the national grid.
The views expressed herein constitute only the opinions/ facts and do not constitute any guidelines or recommendations on any course of action to be followed by the reader. This information is meant for general reading purposes only and is not meant to serve as a professional guide for the readers
